1FS Multi-Alternative Income Fund’s NAV per common share as of the date indicated is the NAV determined by FS Multi-Alternative Income Fund for purposes of complying with the requirements
of Section 23(b) of the Investment Company Act of 1940, as amended, and has not been approved by FS Multi-Alternative Income Fund’s board of trustees. FS Multi-Alternative Income Fund’s
NAV per common share may increase or decrease in the future, and any such change may be material.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance
data current to the most recent month end, please call 877-628-8575 or visit our website at www.fsinvestments.com.

2The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the most recent quarterly cash distribution per share as of the date indicated, without compounding), divided by FS Multi-Alternative Income Fund’s (the fund) net asset value (NAV) per Class I shares as the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions on the fund’s common shares is subject to the discretion of the fund’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. The determination of the tax attributes of the fund’s distributions is made annually at the end of the calendar year, and a determination made on an interim basis may not be representative of the actual tax attributes of the fund’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. The fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the fund's performance, such as return of capital, or expense reimbursements and waivers.

Performance

TOTAL RETURNS
As of 9/13/2019

MTD

QTD

YTD

1 YR

SINCE INCEPTION
10/1/2018

FNNIX (Class I at NAV)

0.47%

0.86%

8.96%

–

5.65%

Performance data quoted represents past performance and is no guarantee of future results. Returns for time periods greater than one year are annualized. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted.

2Calculated as a percentage of average net assets attributable to shares for year 1. If the estimated interest expense associated with the fund's expected use of leverage is excluded, the net
expense ratio is expected to be 1.85%. The fund’s actual expenses may be different than the estimate above. The calculation also takes into account the fee waiver and/or expense
reimbursement during such time period. FS Multi-Alternative Advisor, LLC, FS Multi-Alternative Income Fund’s investment adviser, has entered into an expense limitation agreement with the
fund under which it has agreed to pay or waive the “ordinary operating expenses” (exclusive of (1) investment advisory fees, (2) portfolio transaction and other investment-related costs, (3)
interest expense and other financing costs, (4) taxes, (5) distribution or shareholder servicing fees and (6) extraordinary expenses) of the fund attributable to a share class to the extent that
such expenses exceed 0.25% per annum of the fund’s average daily net assets attributable to the applicable share class thereafter. The expense limitation agreement will continue indefinitely
until terminated by the fund’s board of trustees on written notice to FS Multi-Alternative Advisor. The expense limitation agreement permits the adviser to recoup the amounts it has paid or
waived pursuant to the agreement in the future, subject to certain limitations.

3The payment of distributions on FS Multi-Alternative Income Fund’s common shares is subject to the discretion of FS Multi-Alternative Income Fund’s board of trustees and applicable legal
restrictions and, therefore, there can be no assurance as to the amount or timing of any such distributions.

4No secondary market is expected to develop for the Fund’s common shares; liquidity for the common shares will be provided only through quarterly repurchase offers for no less than 5% and
no more than 25% of the common shares at NAV, and there is no guarantee that an investor will be able to sell all the common shares that the investor desires to sell in the repurchase offer. Due
to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity.

Investing in the Fund involves risks, including the risk that a shareholder may receive little or no return on their investment or that a shareholder may lose part or all of its investment. Below is a summary of some of the principal risks of investing in the Fund. The following is only a summary of certain risks of investing in the Fund. For a more complete discussion of the risks of investment in the Fund, see the Fund’s prospectus, including the risk factors set forth under the heading entitled “Types of Investments and Related Risks,” before deciding to invest in the Fund.

Risks related to the Fund’s investments include risks relating to:

the value of the Fund’s financial instruments, and the financial markets in general, which may be extremely volatile;​

the Fund’s investment focus on credit-related financial instruments, which may increase the volatility of investment results over time and create the potential that market movements that impact only specific asset classes or a loss in any such position could have a material adverse impact on the Fund’s financial instruments;

the use of short sales, options, leverage, futures, swaps and other derivative instruments and other investment techniques, which may create special risks and substantially increase the impact of adverse price movements on the Fund’s portfolio;

the Fund’s investments in distressed assets and/or positions that are illiquid, the realization and/or disposition of which may not occur for an extended period of time;

investments in non-U.S. securities and securities denominated in foreign currencies;

lack of control over the private investment funds in which the Fund may invest;

market disruption and geopolitical events, economic events and market events, and government intervention in the financial markets; and

the ownership by FS Investments and its affiliates of a significant percentage of the Fund’s outstanding Shares, which will, for the foreseeable future, allow FS Investments and its affiliates to either control the Fund or be in a position to exercise a significant influence on the outcome of any matter put to a vote of investors;

the Fund’s dependence on the success of FS Multi-Alternative Advisor’s methodology in allocating the Fund’s assets to the sub-advisers and its selection and oversight of the sub-advisors;

the liquidity risks associated with the Fund’s closed-end interval fund structure and the fact that the shares of the Fund will not be listed on any national securities exchange at this time, if ever;

the anti-takeover provisions in the Fund’s declaration of trust and bylaws;

the Fund’s status as a non-diversified investment company;

the Fund’s status as a RIC for U.S. federal income tax purposes;

the KKR Termination Triggers (as defined in the prospectus), including the risks that (i) if KKR Credit is terminationed, FS Multi-Alternative Advisor would also be terminated, which would impose costs on the Fund in order to find a replacement adviser; (ii) FS Multi-Alternative Advisor may have an incentive to allocate at least 20% of the Fund’s assets to KKR Credit to retain KKR Credit as a sub-adviser with respect to Private Credit, even if KKR Credit is underperforming, to prevent the termination of its own advisory agreement with the Fund; and (iii) FS Multi-Alternative Advisor is limited in its ability to add additional strategies to the Fund until the portion of the Fund’s assets allocated to KKR Credit totals $225 million; and

the GTAM Termination Trigger (as defined in the prospectus), including the risk that FS Multi-Alternative Advisor is limited in its ability to add additional strategies until the portion of the Fund’s assets allocated to the GoldenTree Sub-Adviser totals $100 million or more.

Accordingly, the Fund should be considered a speculative, long-term investment of limited liquidity that entails substantial risks, and prospective investors should invest in the Fund only if they can sustain a complete loss of their investments.

An investment in any fund sponsored by FS Investments involves a high degree of risk and may be considered speculative. Investors are advised to consider the investment objectives, risks, and charges and expenses of the applicable fund carefully
before investing. For funds offering shares to new investors, the applicable fund’s prospectus contains this and other information. Investors may obtain a copy of the applicable fund’s prospectus free of charge at www.fsinvestments.com or by contacting FS Investments at 201 Rouse Boulevard, Philadelphia, PA 19112 or by phone at 877-628-8575. Investors should read and carefully consider all information
found in the applicable fund’s prospectus and other reports filed with the U.S. Securities and Exchange Commission (SEC) before investing.

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. An offering is made only by a prospectus, which must be made available to you in connection with this offering. No offering is made to New York investors except by a prospectus filed with the Department of Law of the State of New York.

Individual investors and endowments may have different investment horizons, liquidity needs and risk tolerances. In addition, fees that may be incurred by an investor in any of the funds sponsored by FS Investments may be different than fees incurred by an endowment investing in similar assets as those in which the funds invest.